Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Throughout this problem, use an annual effective interest rate of 4%. a) Assume Rebecca makes deposits to an account at the end of each year
Throughout this problem, use an annual effective interest rate of 4%. a) Assume Rebecca makes deposits to an account at the end of each year for the next 30 years. If her 1st deposit is 5,000, and each subsequent deposit decreases by X, Rebecca's accumulated fund balance will be 200,000 after 30 years. Calculate X. (5 points) b) Assume Rebecca makes deposits to an account at the beginning of each year for the next 30 years. If her 1st deposit is 5,000, and each subsequent deposit is 2% lower than the previous deposit, what is the present value of all the deposits? (5 points) Throughout this problem, use an annual effective interest rate of 4%. a) Assume Rebecca makes deposits to an account at the end of each year for the next 30 years. If her 1st deposit is 5,000, and each subsequent deposit decreases by X, Rebecca's accumulated fund balance will be 200,000 after 30 years. Calculate X. (5 points) b) Assume Rebecca makes deposits to an account at the beginning of each year for the next 30 years. If her 1st deposit is 5,000, and each subsequent deposit is 2% lower than the previous deposit, what is the present value of all the deposits? (5 points)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started